Matrixport: The market is experiencing a corrective rebound, but it should not be regarded as a new trend.

Matrixport released a chart today stating that a month ago, Bitcoin's price action shifted from strong to weak, followed by a significant pullback that caught many investors off guard. Some attributed this decline to selling by early holders (OG), ignoring the substantial changes in portfolio structure, leverage levels, and fund flows since the summer. In last Friday's Matrix on Target report, we pointed out that with sentiment indicators falling to near-extreme levels, the probability of a short-term corrective rebound was increasing. This rebound has largely materialized. However, in our view, this is insufficient to indicate the start of a new bull market. A more reasonable interpretation is that the current market remains in a relatively complex trading environment with low risk appetite. In such an environment, rebounds tend to be rapid and significant, representing more tactical, short-term trading opportunities and should not be considered the starting point of a new trend.